WATCH: Stock picks — Raubex and Anglo American

Siboniso Nxumalo from Old Mutual Investments chose Raubex as his stock pick and Mark du Toit from OysterCatcher Investments chose Anglo American.

Nxumalo said: “I’m going for Raubex, the construction company. So, in SA there used to be a lot of construction companies, now there are actually only two big ones, and Raubex was a specialist road builder. If you look at them, they’ve had a tough time over the past decade where construction has been largely out of favour.”

Du Toit said: “I’m going for Anglo American, we’re looking at a nice diversified earnings stream. I know last year the iron-ore contributed about 50% of the ebitda [earnings before interest, tax, depreciation and amortisation] and the PGMs [platinum group metals] about 30%. But going forward they’ve got a great project in the copper space and that’s probably going to add another 30% to their copper production.”